Fostering a Culture of Innovation: A Framework for Understanding Organizational Capacity for Innovation

Abstract

The churn rate of innovation has become constant with the emergence of globalization and technological advancements. The ability for organizations to maintain competitive advantage stems from many different veins; however, modern perspective and strategies indicate that for long-term sustainability, firms are scaling outside of their market (blue ocean strategy) or competing within their market (red ocean strategy). Both approaches require organizations to apply non-traditional practices to advance their strategic portfolio. These methods are centered around innovation from disruptive to fast-second and many other innovation methods. Essential components are needed to ensure these innovation strategies can transition ideas into action leading to positive change. The following article provides a framework for leaders to measure organizational capacity for innovation.

Keywords: innovation, planning, culture, leadership, strategy, framework

JEL Classification: M1, M10